The bourse experienced another day of positive sentiment and increased gains, closing in green for the 12th consecutive day. After yesterday's volatile trading, the market rebounded strongly with significant gains today.
Amidst the increased participation from retail and HNW investors, ASPI closed the day in green at 13,885, gaining 110 points marking a 0.80% increase from the previous day
The most significant contributors towards the positive index were BREW, LOLC, SAMP, MELS, and JKH. Additionally, specific stocks in the Capital Goods and Diversified Financials such as JKH continued to attract investor interest throughout the day.
Amidst multiple off-board transactions, turnover was at a 3-week high of LKR 6.0Bn, marking an increase of 47.6%, from the monthly average of LKR 4.1Bn.
Moreover, the Capital Goods sector led the turnover by 29%, followed by the Diversified Financials and Materials sectors jointly contributing 26% of the overall turnover. There was a net foreign outflow of LKR 393.9Mn signaling interest in external investments.
T-Bill auction yields drop across the board
The CBSL conducted the weekly T-Bill auction today, raising LKR 206.0Bn and fully accepting the total offered amount. All three maturities experienced oversubscriptions at today’s T-Bill auction, with total bids exceeding the total offered amount by 2.3 times.
Meanwhile, the weighted average yield rates saw a slight downturn across the board, where 3M T-Bill, 6M T-Bill and 1Yr T-Bill, experienced declines of 4bps, 6bps, and 1bps, respectively.
In the secondary market, market participants maintained bullish momentum prior to the T-Bond auction due tomorrow. As a result, the secondary market saw continued buying interest throughout the trading day, generating moderate volumes.
Amongst the traded maturities, notable trades occurred in the 2027, 2028, 2029, 2030 and 2031 maturities. On the short end of the curve, 01.05.27, 01.09.27 and 15.12.27 maturities traded between 9.85% to 10.00%.
On the mid-end of the curve 15.02.28 and 15.03.28 traded at 10.30% whilst 01.05.28, 01.07.28, 15.10.28 maturities traded at 10.36%, 10.45% and 10.55%, respectively. The 15.09.29 maturity traded at 10.85%. Meanwhile, the 15.05.30, 15.10.30 and 15.03.31 traded at the rates of 11.05%, 11.10% and 11.30%, respectively.
On the external front, the LKR appreciated against the USD, closing at LKR 290.31/USD, compared to LKR 290.36/USD recorded the previous day. CBSL holdings of government securities remained unchanged, closing at LKR 2,515.62Bn today. Overnight liquidity in the banking system increased to LKR 234.79Bn from LKR 188.91Bn recorded the previous day
Courtesy: First Capital Research
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